What Is Odometer Fraud?

Would you like to learn what is odometer fraud? Unfortunately, odometer fraud happens quite often. Odometer fraud occurs when someone illegally changes the odometer reading that is shown on a used car. When someone illegally changes the odometer reading, they will generally alter the title to reflect the falsified odometer reading, as well. Cars with lower mileage generally sell for a higher price than high mileage cars, so there is financial incentive for someone to commit odometer fraud.

The Motor Vehicle Information and Cost Savings Act makes it illegal for someone to change the odometer reading on a car. The law was passed by Congress in 1972. If you are purchasing a vehicle that is less than 10 years old, the law requires that the seller give you a document that gives you full disclosure over the mileage of the car. Those who commit odometer fraud are subject to criminal charges. If you were to purchase a car that has had odometer fraud committed to it, the Motor Vehicle Information and Cost Savings Act also gives you the right to file a civil lawsuit against the seller for monetary damages.

It is almost impossible for the average person to notice if the odometer has been illegally changed on a car. When you are purchasing a used car, demand that you be able to take the car to your mechanic for an inspection. A trained mechanic should be able to tell approximately how many miles are on a vehicle by studying the condition of the engine and other mechanical parts. If the seller refuses, odometer fraud may have been committed on that vehicle.